Legal Question in Real Estate Law in New York

My wife & I are trying to refinance our cooperative apartment in NYC. We have been approved by the bank, and are now being held up by our cooperative board.

Basically, we purchased the property at 452K & put 10% down. our refi appraisal came in at 440K. Based on this new appraisal value, & what we still owe on our existing mortgage, we owe 92%. The cooperative board will not allow us to borrow more than 90% of the new value (396K). We are asking to borrow 93% in order to not drain our savings. Our new monthly payments would be $265 less per month, & would allow us to get to a 90% LTV faster than if we keep our existing mortgage.

Can we legally challenge this conditioned approval by the cooperative board?

Please advise, thank you.


Asked on 8/03/09, 11:57 am

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

If the Coop documents, which you signed and constitute an agreement to which yu are a party, limit the financing as stated, the Board seems to be able to assert your agreement. I have not seen these documents so I cannot answer if they are acting properly or not. They seem to have a legitmate concern, especially in these economic times. If the rules are there, to avoid litigating the issue, stay within the rules, and just add the mortgage savings to your savings each month, to restore what you need to stay within the 90% rule.

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Answered on 8/08/09, 12:59 pm


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